This study explores how carbon emission is affected by financial inclusion. Using a balanced panel data set of 26 Asian countries, we compute a composite index, through principal component analysis (PCA) technique, of financial inclusion based on a set of attributes related to financial inclusion. Our main analysis also delineates to subsample of developed and developing Asian economies. Our findings reveal a long (short)-run positive (negative) impact of financial inclusion on carbon emission across the Asian countries. This finding is also true for developed countries sub-sample implying a non-linearity in short- and long-run relationship. For the developing countries, a more pronounced long-run positive impact compared to developed countries is found. Furthermore, pairwise causality test results indicate a bi-directional causality between financial inclusion and carbon emission. These findings posit important policy implications, especially in the context of strategic integration of financial inclusion and climate change strategies.